India shares plunge as record infections prompt new lockdowns
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BENGALURU - Indian shares fell sharply on Monday as Delhi imposed a lockdown to stem surging coronavirus cases, reinforcing fears of further economic pain from restrictions induced by the virus.
The NSE Nifty 50 index was down 1.77% at 14,359.45 and the S&P BSE Sensex fell 1.81% to 47,949.42.
Delhi's government on Monday ordered a six-day lockdown as its healthcare system crumbled under the weight of new infections. The financial hub of Mumbai is already under a lockdown since April 15.
The country reported its tenth record daily increase in COVID-19 cases in 11 days as total infections pass the 15-million mark.
"The economic impact of the current rise in COVID cases will be significant in the short term... for industries like travel, tourism, restaurants and hotels," said Naveen Kulkarni, chief investment officer at Axis Securities, in an e-mailed statement.
State-owned banks dropped for the third straight session and led the decline among peers.
Private banks also suffered as they dropped 2.6%, with top private-sector lender HDFC Bank losing 1.1%, as investors sold off positions fearing that the resurgence in COVID-19 cases would hurt banks' asset quality.
Energy stocks fell 2.7% as oil prices dropped on fears of further restrictions.
Auto stocks dropped over 2.8%, with Maruti Suzuki India Ltd falling more than 2%.
Bucking the wider trend, pharmaceutical stocks rose 0.2% amid rising demand for drugs, medical supplies and hospital beds.
